Hitachi Plans to Spin-Off Hard Disk Drive Business Unit

Hitachi and Hitachi Global Storage Technologies (Hitachi GST) have announced that Hitachi GST has commenced preparation to make its initial public offering with a listing on the New York Stock Exchange or National Association of Securities Dealers Automated Quotations (Nasdaq) in cooperation with Hitachi.

Hitachi GST expects to use the proceeds of the initial public offering for, among other things, ongoing operating and capital expenditures, research and development, strategic activities and general corporate purposes. Hitachi and Hitachi GST will monitor economic and capital market conditions relative to the timing of the proposed initial public offering.

It is noteworthy that Hitachi wants to basically spin-off its hard drive business unit amid Seagate's intention to become private company as well as some major changes on the market of hard disk drives (HDDs).

It remains to be seen whether the IPO will affect Hitachi GST's strategies and roadmap.